Zenith Energy Ltd Successful Fundraising of £2.17 million (0692S)

TIDMZEN

RNS Number : 0692S

Zenith Energy Ltd

21 June 2018

June 21, 2018

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, JAPAN, SOUTH AFRICA, REPUBLIC OF IRELAND, SWITZERLAND OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DISTRIBUTE THIS ANNOUNCEMENT

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 ("MAR").

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Successful Fundraising of GBP2.17 million

Zenith Energy Ltd., ("Zenith" or the "Company"), (LSE: ZEN; TSX.V: ZEE), the international oil and gas production company operating the largest onshore oilfield in Azerbaijan, yesterday announced a Placing, a Subscription and the launch of an offer via PrimaryBid. The Company is pleased to announce that it has raised gross proceeds totalling, in aggregate, GBP2,166,898 through the successful Placing, Subscription and PrimaryBid Offer.

As a result of the Placing, Subscription and PrimaryBid Offer the Company will issue a total of 54,172,451 new common shares, (the "New Common Shares").

Application has been made to the UK Listing Authority for the New Common Shares and the 6,721,647 Admission Shares (as defined in the prospectus dated 20 June 2018) to be admitted to the standard segment of the Official List of the UKLA and to the London Stock Exchange for admission to trading on the main market for listed securities of the London Stock Exchange ("Admission"). The New Common Shares and the Admission Shares will rank pari passu in all respects with the Company's existing Common Shares and it is expected that Admission will become effective and that dealings in the New Common Shares and the Admission Shares will commence on or around 8.00 a.m. on 26 June 2018. An application will also be made for the New Common Shares to be listed on the TSX Venture Exchange.

The enlarged issued share capital following Admission will be 214,094,217 common shares and the New Common Shares will comprise approximately 25.3 per cent. of the enlarged issued share capital on Admission.

The Company announces that, following the closing of the PrimaryBid Offer, the trading halt on the TSXV will be lifted with effect from 9:30 a.m. Toronto time / 1:30 p.m. London time.

Unless otherwise defined, capitalised terms shall have the meaning as those set out in the Company's announcements of 20 June 2018.

For further information please contact:

Zenith Energy Ltd.

Andrea Cattaneo

Chief Executive Officer

E-mail: [e-mail]

Tel: [phone]

Vigo Communications - PR Adviser

Patrick d'Ancona

Chris McMahon

Kate Rogucheva

Tel: [phone]

Daniel Stewart & Company Plc - (Joint Broker)

Robert Emmet- Corporate Broking

Nikhil Varghese- Corporate Finance

Tel: + 44 (0) 207 776 6550

Optiva Securities - (Joint Broker)

Christian Dennis

Tel: + 44 (0) 203 137 1903

Allenby Capital Limited - (Financial Adviser)

Nick Harriss

Nick Athanas

Tel: + 44 (0) 203 328 5656

PrimaryBid

Dave Mutton

Tel: + 44 (0) 20 7491 6519

EXPECTED TIMETABLE OF PRINCIPAL EVENTS

 
 Admission and commencement of unconditional     8.00 a.m. on 26 June 
  dealings in the Placing Shares, Subscription                   2018 
  Shares, Offer Shares and Admission Shares 
 CREST members' accounts credited in respect     8.00 a.m. on 26 June 
  of Depository Interests                                        2018 
 Despatch of definitive share certificates                3 July 2018 
  for Shares no later than 
 

These dates and times are indicative only, subject to change and may be brought forward as well as moved back, in which case new dates and times will be announced. All references to time in this timetable are to London, UK time unless otherwise stated and each of the times and dates are indicative only and may be subject to change.

Notes to Editors:

Zenith Energy Ltd. is an international oil and gas production company, dual listed on the TSX Venture Exchange and London Stock Exchange.

The Company operates the largest onshore oilfield in Azerbaijan following the signing of a 25-year REDPSA, (Rehabilitation, Exploration, Development and Production Sharing Agreement), with SOCAR, State Oil Company of the Azerbaijan Republic, in 2016.

The Company's primary focus is the development of its Azerbaijan operations by leveraging its technical expertise and financial resources to maximise low-cost oil production via a systematic field rehabilitation programme intended to achieve significantly increased revenue. Zenith also operates, or has working interests in, a number of natural gas production concessions in Italy. The Company's Italian operations produce natural gas, natural gas condensate and electricity.

Zenith's development strategy is to identify and rapidly seize value-accretive hydrocarbon production opportunities in the onshore oil & gas sector. The Company's Board of Directors and senior management team have the experience and technical expertise to develop the Company successfully.

To find out more, visit www.zenithenergy.ca or follow Zenith on Twitter @zenithenergyltd

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June 21, 2018 02:30 ET (06:30 GMT)